CHAPTER III

ECONOMIC AND SOCIAL LIFE

63. In the economic and social realms, too, the dignity and complete vocation of the human person and the welfare of society as a whole are to be respected and promoted. For man is the source, the center, and the purpose of all economic and social life.

Like other areas of social life, the economy of today is marked by man's increasing domination over nature, by closer and more intense relationships between citizens, groups, and countries and their mutual dependence, and by the increased intervention of the state. At the same time progress in the methods of production and in the exchange of goods and services has made the economy an instrument capable of better meeting the intensified needs of the human family.

Reasons for anxiety, however, are not lacking. Many people, especially in economically advanced areas, seem, as it were, to be ruled by economics, so that almost their entire personal and social life is permeated with a certain economic way of thinking. Such is true both of nations that favor a collective economy and of others. At the very time when the development of economic life could mitigate social inequalities (provided that it be guided and coordinated in a reasonable and human way), it is often made to embitter them; or, in some places, it even results in a decline of the social status of the underprivileged and in contempt for the poor. While an immense number of people still lack the absolute necessities of life, some, even in less advanced areas, live in luxury or squander wealth. Extravagance and wretchedness exist side by side. While a few enjoy very great power of choice, the majority are deprived of almost all possibility of acting on their own initiative and responsibility, and often subsist in living and working conditions unworthy of the human person.

A similar lack of economic and social balance is to be noticed between agriculture, industry, and the services, and also between different parts of one and the same country. The contrast between the economically more advanced countries and other countries is becoming more serious day by day, and the very peace of the world can be jeopardized thereby.

Our contemporaries are coming to feel these inequalities with an ever sharper awareness, since they are thoroughly convinced that the ampler technical and economic possibilities which the world of today enjoys can and should correct this unhappy state of affairs. Hence, many reforms in the socioeconomic realm and a change of mentality and attitude are required of all. For this reason the Church down through the centuries and in the light of the Gospel has worked out the principles of justice and equity demanded by right reason both for individual and social life and for international life, and she has proclaimed them especially in recent times. This sacred council intends to strengthen these principles according to the circumstances of this age and to set forth certain guidelines, especially with regard to the requirements of economic development.(1)

SECTION 1
Economic Development

64. Today more than ever before attention is rightly given to the increase of the production of agricultural and industrial goods and of the rendering of services, for the purpose of making provision for the growth of population and of satisfying the increasing desires of the human race. Therefore, technical progress, an inventive spirit, an eagerness to create and to expand enterprises, the application of methods of production, and the strenuous efforts of all who engage in production—in a word, all the elements making for such development—must be promoted. The fundamental finality of this production is not the mere increase of products nor profit or control but rather the service of man, and indeed of the whole man with regard for the full range of his material needs and the demands of his intellectual, moral, spiritual, and religious life; this applies to every man whatsoever and to every group of men, of every race and of every part of the world. Consequently, economic activity is to be carried on according to its own methods and laws within the limits of the moral order," so that God's plan for mankind may be realized.(3)

65. Economic development must remain under man's determination and must not be left to the judgment of a few men or groups possessing too much economic power or of the political community alone or of certain more powerful nations. It is necessary, on the contrary, that at every level the largest possible number of people and, when it is a question of international relations, all nations have an active share in directing that development. There is need as well of the coordination and fitting and harmonious combination of the spontaneous efforts of individuals and of free groups with the undertakings of public authorities.

Growth is not to be left solely to a kind of mechanical course of the economic activity of individuals, nor to the authority of government. For this reason, doctrines which obstruct the necessary reforms under the guise of a false liberty, and those which subordinate the basic rights of individual persons and groups to the collective organization of production must be shown to be erroneous.(4)

Citizens, on the other hand, should remember that it is their right and duty, which is also to be recognized by the civil authority, to contribute to the true progress of their own community according to their ability. Especially in underdeveloped areas, where all resources must urgently be employed, those who hold back their unproductive resources or who deprive their community of the material or spiritual aid that it needs—saving the personal right of migration—gravely endanger the common good.

66. To satisfy the demands of justice and equity, strenuous efforts must be made, without disregarding the rights of persons or the natural qualities of each country, to remove as quickly as possible the immense economic inequalities, which now exist and in many cases are growing and which are connected with individual and social discrimination. Likewise, in many areas, in view of the special difficulties of agriculture relative to the raising and selling of produce, country people must be helped both to increase and to market what they produce, and to introduce the necessary development and renewal and also obtain a fair income. Otherwise, as too often happens, they will remain in the condition of lower-class citizens. Let farmers themselves, especially young ones, apply themselves to perfecting their professional skill, for without it, there can be no agricultural advance.(5)

Justice and equity likewise require that the mobility, which is necessary in a developing economy, be regulated in such a way as to keep the life of individuals and their families from becoming insecure and precarious. When workers come from another country or district and contribute to the economic advancement of a nation or region by their labor, all discrimination as regards wages and working conditions must be carefully avoided. All the people, moreover, above all the public authorities, must treat them not as mere tools of production but as persons, and must help them to bring their families to live with them and to provide themselves with a decent dwelling; they must also see to it that these workers are incorporated into the social life of the country or region that receives them. Employment opportunities, however, should be created in their own areas as far as possible.

In economic affairs which today are subject to change, as in the new forms of industrial society in which automation, for example, is advancing, care must be taken that sufficient and suitable work and the possibility of the appropriate technical and professional formation are furnished. The livelihood and the human dignity especially of those who are in very difficult conditions because of illness or old age must be guaranteed.

SECTION 2
Certain Principles Governing Socio-Economic Life as a Whole

67. Human labor which is expended in the production and exchange of goods or in the performance of economic services is superior to the other elements of economic life, for the latter have only the nature of tools.

This labor, whether it is engaged in independently or hired by someone else, comes immediately from the person, who as it were stamps the things of nature with his seal and subdues them to his will. By his labor a man ordinarily supports himself and his family, is joined to his fellow men and serves them, and can exercise genuine charity and be a partner in the work of bringing divine creation to perfection. Indeed, we hold that through labor offered to God man is associated with the redemptive work of Jesus Christ, Who conferred an eminent dignity on labor when at Nazareth He worked with His own hands. From this there follows for every man the duty of working faithfully and also the right to work. It is the duty of society, moreover, according to the circumstances prevailing in it, and in keeping with its role, to help the citizens to find sufficient employment. Finally, remuneration for labor is to be such that man may be furnished the means to cultivate worthily his own material, social, cultural, and spiritual life and that of his dependents, in view of the function and productiveness of each one, the conditions of the factory or workshop, and the common good.(6)

Since economic activity for the most part implies the associated work of human beings, any way of organizing and directing it which may be detrimental to any working men and women would be wrong and inhuman. It happens too often, however, even in our days, that workers are reduced to the level of being slaves to their own work. This is by no means justified by the so-called economic laws. The entire process of productive work, therefore, must be adapted to the needs of the person and to his way of life, above all to his domestic life, especially in respect to mothers of families, always with due regard for sex and age. The opportunity, moreover, should be granted to workers to unfold their own abilities and personality through the performance of their work. Applying their time and strength to their employment with a due sense of responsibility, they should also all enjoy sufficient rest and leisure to cultivate their familial, cultural, social and religious life. They should also have the opportunity freely to develop the energies and potentialities which perhaps they cannot bring to much fruition in their professional work.

68. In economic enterprises it is persons who are joined together, that is, free and independent human beings created to the image of God. Therefore, with attention to the functions of each—owners or employers, management or labor—and without doing harm to the necessary unity of management, the active sharing of all in the administration and profits of these enterprises in ways to be properly determined is to be promoted.(7) Since more often, however, decisions concerning economic and social conditions, on which the future lot of the workers and of their children depends, are made not within the business itself but by institutions on a higher level, the workers themselves should have a share also in determining these conditions—in person or through freely elected delegates.

Among the basic rights of the human person is to be numbered the right of freely founding unions for working people. These should be able truly to represent them and to contribute to the organizing of economic life in the right way. Included is the right of freely taking part in the activity of these unions without risk of reprisal. Through this orderly participation joined to progressive economic and social formation, all will grow day by day in the awareness of their own function and responsibility, and thus they will be brought to feel that they are comrades in the whole task of economic development and in the attainment of the universal common good according to their capacities and aptitudes.

When, however, socio-economic disputes arise, efforts must be made to come to a peaceful settlement. Although recourse must always be had first to a sincere dialogue between the parties, a strike, nevertheless, can remain even in present-day circumstances a necessary, though ultimate, aid for the defense of the workers' own rights and the fulfillment of their just desires. As soon as possible, however, ways should be sought to resume negotiation and the discussion of reconciliation.

69. God intended the earth with everything contained in it for the use of all human beings and peoples. Thus, under the leadership of justice and in the company of charity, created goods should be in abundance for all in like manner.(8) Whatever the forms of property may be, as adapted to the legitimate institutions of peoples, according to diverse and changeable circumstances, attention must always be paid to this universal destination of earthly goods. In using them, therefore, man should regard the external things that he legitimately possesses not only as his own but also as common in the sense that they should be able to benefit not only him but also others.(9) On the other hand, the right of having a share of earthly goods sufficient for oneself and one's family belongs to everyone. The Fathers and Doctors of the Church held this opinion, teaching that men are obliged to come to the relief of the poor and to do so not merely out of their superfluous goods.(10) If one is in extreme necessity, he has the right to procure for himself what he needs out of the riches of others.(11) Since there are so many people prostrate with hunger in the world, this sacred council urges all, both individuals and governments, to remember the aphorism of the Fathers, "Feed the man dying of hunger, because if you have not fed him, you have killed him,"(12) and really to share and employ their earthly goods, according to the ability of each, especially by supporting individuals or peoples with the aid by which they may be able to help and develop themselves.

In economically less advanced societies the common destination of earthly goods is partly satisfied by means of the customs and traditions proper to the community, by which the absolutely necessary things are furnished to each member. An effort must be made, however, to avoid regarding certain customs as altogether unchangeable, if they no longer answer the new needs of this age. On the other hand, imprudent action should not be taken against respectable customs which, provided they are suitably adapted to present-day circumstances, do not cease to be very useful. Similarly, in highly developed nations a body of social institutions dealing with protection and security can, for its own part, bring to reality the common destination of earthly goods. Family and social services, especially those that provide for culture and education, should be further promoted. When all these things are being organized, vigilance is necessary to present the citizens from being led into a certain inactivity vis-a-vis society or from rejecting the burden of taking up office or from refusing to serve.

70. Investments, for their part, must be directed toward procuring employment and sufficient income for the people both now and in the future. Whoever makes decisions concerning these investments and the planning of the economy—whether they be individuals or groups of public authorities—are bound to keep these objectives in mind and to recognize their serious obligation of watching, on the one hand, that provision be made for the necessities required for a decent life both of individuals and of the whole community and, on the other, of looking out for the future and of establishing a right balance between the needs of present-day consumption, both individual and collective, and the demands of investing for the generation to come. They should also always bear in mind the urgent needs of underdeveloped countries or regions. In monetary matters they should beware of hurting the welfare of their own country or of other countries. Care should also be taken lest the economically weak countries unjustly suffer any loss from a change in the value of money.

71. Since property and other forms of private ownership of external goods contribute to the expression of the personality, and since, moreover, they furnish one an occasion to exercise his function in society and in the economy, it is very important that the access of both individuals and communities to some ownership of external goods be fostered

Private property or some ownership of external goods confers on everyone a sphere wholly necessary for the autonomy of the person and the family, and it should be regarded as an extension of human freedom. Lastly, since it adds incentives for carrying on one's function and charge, it constitutes one of the conditions for civil liberties.(13)

The forms of such ownership or property are varied today and are becoming increasingly diversified. They all remain, however, a cause of security not to be underestimated, in spite of social funds, rights, and services provided by society. This is true not only of material property but also of immaterial things such as professional capacities.

The right of private ownership, however, is not opposed to the right inherent in various forms of public property. Goods can be transferred to the public domain only by the competent authority, according to the demands and within the limits of the common good, and with fair compensation. Furthermore, it is the right of public authority to prevent anyone from abusing his private property to the detriment of the common good.(14)

By its very nature private property has a social quality which is based on the law of the common destination of earthly goods.(15) If this social quality is overlooked, property often becomes an occasion of passionate desires for wealth and serious disturbances, so that a pretext is given to the attackers for calling the right itself into question.

In many underdeveloped regions there are large or even extensive rural estates which are only slightly cultivated or lie completely idle for the sake of profit, while the majority of the people either are without land or have only very small fields, and, on the other hand, it is evidently urgent to increase the productivity of the fields. Not infrequently those who are hired to work for the landowners or who till a portion of the land as tenants receive a wage or income unworthy of a human being, lack decent housing and are exploited by middlemen. Deprived of all security, they live under such personal servitude that almost every opportunity of acting on their own initiative and responsibility is denied to them and all advancement in human culture and all sharing in social and political life is forbidden to them. According to the different cases, therefore, reforms are necessary: that income may grow, working conditions should be improved, security in employment increased, and an incentive to working on one's own initiative given. Indeed, insufficiently cultivated estates should be distributed to those who can make these lands fruitful; in this case, the necessary things and means, especially educational aids and the right facilities for cooperative organization, must be supplied. Whenever, nevertheless, the common good requires expropriation, compensation must be reckoned in equity after all the circumstances have been weighed.

72. Christians who take an active part in present-day socio-economic development and fight for justice and charity should be convinced that they can make a great contribution to the prosperity of mankind and to the peace of the world. In these activities let them, either as individuals or as members of groups, give a shining example. Having acquired the absolutely necessary skill and experience, they should observe the right order in their earthly activities in faithfulness to Christ and His Gospel. Thus their whole life, both individual and social, will be permeated with the spirit of the beatitudes, notably with a spirit of poverty.

Whoever in obedience to Christ seeks first the Kingdom of God, takes therefrom a stronger and purer love for helping all his brethren and for perfecting the work of justice under the inspiration of charity.(16)